The Troika process: Economic models and macroeconomic policy in the USA

Donihue, Michael and Kitchen, John (1999): The Troika process: Economic models and macroeconomic policy in the USA.

Abstract

In the executive branch of the U.S. Federal government, a group known as the Troika -- comprised of senior officials of the President’s Council of Economic Advisers, the Department of the Treasury, and the Office of Management and Budget -- plays an important role in developing the economic agenda for each Administration. The Troika develops the economic assumptions underlying the Administration’s budget proposals including an assessment of current economic conditions and forecasts for key economic indicators. It meets regularly to address a variety of policy issues, to evaluate and modify the Administration’s forecasts, and to monitor the current stance of fiscal and monetary policies relative to the economy’s position in the business cycle. This paper provides an overview of the Troika process and the role of empirical models in the development of the fiscal policies and macroeconomic forecasts of the U.S. government.

• Item Type: MPRA Paper
• Language: English
• Keywords: macroeconomic forecasting; econometric models; government policy
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; H - Public Economics > H6 - National Budget, Deficit, and Debt > H68 - Forecasts of Budgets, Deficits, and Debt

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